Number of Brits buying Costa del Sol Property has doubled because of Brexit
Record numbers of tourists, declining unemployment, more than 3% GDP and similar forecasts for 2018, plus improved international credit rating all contributed to an upsurge of the country's housing market, especially for Costa del Sol property. Property portal Panorama.es predicted a "golden age" for Spain's property market, this time "without excesses, until at least 2022".
The market is being headed by Marbella, Benahavis and Estepona, according to Marbella's oldest established estate agency, Panorama Properties. In the run-up to Brexit, twice the number of British buyers have come chosen a second home at the Costa del Sol. Over the past 12 months, estate agencies in Malaga province have reported a 100% year-on-year rise in home purchases made by British buyers.
Marc Pritchard, Sales and Marketing Director of Taylor Wimpey España confirmed the growing trend, having seen far more UK buyers over the past 12 months. BBVA Bank's forecast of a 5% property price increase for Spanish real estate underlines the fact that Spanish property is once again a "must-have" for international buyers.
Pritchard said that the exchange rate fluctuation did influence buyer behaviour. As soon as a favourable exchange rate of GBP/EUR occurs, British buyers gain confidence and make a buying decision. Taylor Wimpey España saw a 15% rise in property reservations across mainland Spain as well as the Balearics. He said that reservations were "at their highest level for seven years".
Tourism is also being affected by currency fluctuations. According to Jacobo Florido, the CEO of Costa del Sol Tourism, 2018 will be "most important summer in the region’s history".
Forecasts for visitor numbers and derived income predict a 2% growth rate over the 12 month period. This follows on an already record-breaking year of 2017, when the Costa del Sol welcomed 12.5 million tourists, a 6.4% rise on 2016. Some 80,000 additional British tourists gave these figures a boost. Malaga Province's beautiful beaches, 300 days of annual sunshine and more relaxed lifestyle have proved more tempting than gloomy prediction of Brexit. The second homes market at the Costa del Sol is seeing a boom.
Pritchard said that several factors were responsible for this upsurge in demand: a comparatively stable exchange rate of Pound Sterling versus the Euro for several months running and growing interest in the Costa del Sol as a holiday destination and second homes market. The province's beaches and stunning golf courses, were just two of the many reasons why the Costa del Sol is seeing so much demand, he said.
